"Israel will know how to draw its conclusions about this war, and I advise Nasrallah not try to put Israel to the test again," Infrastructure Minister Binyamin Ben Eliezer told army radio.

Lieutenant General Dan Halutz stepped down Tuesday, shouldering the blame for Israel's failure to achieve its objectives in a 34-day war against Hezbollah in the summer.

"When I heard the news, I was happy," Hezbollah 's Secretary General said in an interview with al-Manar TV station Friday night.

Nasrallah predicted that Israeli Defense Minister Amir Petetz would also resign his post over the outcome of the July-August war.

Responding to Nasrallah, Israeli Agriculture Minister Shalom Simhon said Halutz had "succeeded in restoring calm on our northern border (with Lebanon) and of allowing an international force to be deployed in southern Lebanon."

He added that "Nasrallah is hiding under ground and he will continue to do so for a long time to come."

For his part, Deputy Prime Minister Shimon Peres dismissed Nasrallah as not understanding democracy, adding that "Israel will come out of the current crisis stronger than ever"

Sources: Naharnet, Ya Libnan